According to which section and act, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm:
Answer & explanation
Correct answer: option 4
The correct answer is option 4- Section 39 of the Indian Partnership Act,1932.
According to Section 39 of the partnership Act 1932, the dissolution of partnership between all the partners of a firm is called the dissolution of the firm. That means the Act recognises the difference in the breaking of relationship between all the partners of a firm and between some of the partners; and it is the breaking or discontinuance of relationship between all the partners which is termed as the dissolution of partnership firm.